Overview
This page helps you understand how to add a covenant to a loan facility. As part of it, you need to first select a covenant template and specify the accountable person and third party related to it.
Subsequently, you need to specify the target schedule by entering target start date, end date, offset, and frequency. The target date will be populated by default. If required, you can change it but it has to be less than the drawdown date.
After this, you need to specify the map to ratio details including mapping condition, entity, ratio name, and threshold percentage. The threshold percentage will be populated by default. If required, you can change it.
Finally, upon clicking the Create button, the covenant is created and displayed on the Covenants tab in the View Loan Facility page.
Adding a Covenant
1. On the Side Panel of the Finvisage application, click Liability.
The menu is expanded.
2. On the expanded menu, click Loan Facility. See the image below:
The View Loan Facility page is displayed on the right pane.
2. On the View Loan Facility page, click the required Covenants tab.
The Covenants tabis open.
3. On the Covenants tab, click the Add Covenant button. See the image below:
The Covenant screen is displayed.
4. On the Covenant screen, enter all the required information.
Note: See the below table for the field description.
| Field | Description |
General Information | |
| Covenant Template | From this drop-down box, select the required covenant template. |
| Accountable Person | In this field, enter the name of the person accountable for the covenant. Note: Accountable person refers to person who is responsible for the covenant. |
| Third Party | In this field, enter the name of the third party. Note: If the covenant is managed by a third party, then the name of that third party needs to be entered in this field. |
Set Target Schedule | |
| Target Date | The target date is populated by default. You can change it if required. Note: The target date should be less than the drawdown date. |
| Offset | Use this field to enable the system to send the alerts before the covenant end date. Suppose, if you specify 2 days in this field, then the system will send the alert 2 days before the covenant end date. |
| Frequency | From this drop-down box, select the frequency by choosing from Monthly, Yearly, or Custom Schedule. Note: In case of Custom Schedule, if the "Monthly" option is chosen, then you can select the required frequency based on the required number of months. You can also select the required frequency based on required day of the month. If the "Yearly" option is chosen, then you can select the frequency based on required number of years. |
| End Date | The End Date refers to the end date of the covenant. |
Map to Ratio | |
| Mapping Condition | From this drop-down box, select the required mapping condition choosing from either Automatic or Manual. Note: Here, Mapping refers to mapping of the covenant. |
| Entity | From this drop-down box, select the entity corresponding to the covenant. |
| Ratio Name | From this drop-down box, select the required ratio. |
| Threshold Percent | The threshold percent is populated by default. If required, you can change it. |
Additional Info | |
Additional Info | In this field, enter the additional information. |
5. Finally, click the Create button.
The covenant is created and displayed on the Covenants tab in the View Loan Facility page.
The navigation path for the View Loan Facility page is Liability > Loan Facility > View Loan Facility.